1 Managing Marketing Programs Pricing Strategies- Mobile Phone Industry By Parvez Rangwalla Email-ID:pryprv@gmail.com Welingkar Institute of Management Development & Research, Bangalore. 2 Topics Covered:Topic Page No 1. History and growth of mobile phone industry in India 3 2. Current scenario of Mobile phone industry 4 3. Marketing strategies of Major players- Nokia and Samsung 7 4. Pricing Strategies in Mobile Phone Industry 12 5. Current trend in mobile industry 17 6. Future of mobile industry (RURAL) 20 7. References 22 3 1. History and growth of mobile phone industry in India: The real transformation came in the scenario of Indian telecom industry after announcement of National telecom policy in 1994. The mobile services were commercially launched in India in August 1995. In the initial 5–6 years the average monthly subscribers additions were around 0.05 to 0.1 million only and the total mobile subscribers base in December 2002 stood at 10.5 millions. However, after the number of proactive initiatives taken by regulator and licensor, the monthly mobile subscriber additions increased to around 2 million per month in the year 2003-04 and 2004-05. In the last few years there has been a huge exponential growth with addition of about 10 to 15 million subscribers per month to customer base.

In the initial days of mobile phone in India in mid 1990‟s the grey market accounted for 80 per cent of the mobile phone sales due to a huge price differential between the legally imported and the grey market phones. Even as the government slashed the duties at the same time various mobile manufacturers reduced their rates to induce the customers to buy a phone from authorized phone shop. Today the grey market comprises very small share of market.

When mobile phones were introduced in India in the mid-90s, US based Motorola, Sweden's Ericsson and Finland's Nokia dominated the handset market in India. Over the years, the old order has changed today players like Samsung, LG, Apple, Virgin, HTC, Huawei, Haier are all competing for a place in the market. Apart from this there is also a competition from imported unbranded Chinese mobiles which are avaible with lot many features of a typically high end say Nokia mobile but, at a substantially lesser price.

After the initial dominance of Nokia from 1990‟s till 2002, a change occurred in Indian market hen CDMA technology was launched in the year 2003. At this point the Korean brands namely Samsung and LG established themselves after they tied up with CDMA operator Reliance Infocomm. This was a breakthrough in India‟s mobile phone industry since, people were able to get mobile phones with Reliance connection only for a initial cost of about Rs. 500/-. This opened up a mass market for mobile manufacturers in India.

Gradually all the major players like Nokia, Motorola came up with their CDMA models and have been able to regain their market share. 4 In the last few years India has witnessed a revolution in mobile phone market with about 8 to 10 million subscribers being added to the customer base each month. The major reasons for this boom have been:

1. Falling tariff rates of telecom service providers .
2. Fall in the prices of mobile handsets.
3. Increase in the reach of service providers covering ever nook and corner of

the country. 2. Current scenario of Mobile phone industry: Following are the highlights of mobile phone industry in India as on December, 2009: 1. The penetration of mobile phones stands at about 30%. 2. 81% of mobile users are in urban area.

3.India‟s rural teledensity stands at about 12.6%
4. India has about 517 million subscribers by December, 2009. 5. It is forecasted that sales of mobile handsets in rural India will grow at CAGR

of around 17% from 2009 to 2012 Above figures clearly indicate that although mobile phones might have made significant inroads into the urban market & urban market may start moving towards saturation but, still lot of...

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...﻿PricingStrategy
To set a pricingstrategy, there are number of steps taken into consideration as follows:
Step 1: Our pricing objectives are to maximize market share and increase sales volume. This strategy will be used when TrackR is being launched into the market. We charge a reasonable price in order for TrackR to be accessible in the market as quickly as possible and also to encourage the interest and excitement of a product. Because of the low price, we are able to raise the sales volume easily, maximize the market share and reach the economic of scale as soon as possible. In order to boost the sales even more, we will offer promotion followed by the product launch, which will later be discussed in the later section. Eventually, we can penetrate the market and create brand awareness.
Step 2: Being a monopoly of TrackR, we have a sole power of controlling price and quantity, but before we set a final price, we must observe the demand. TrackRcan be classified as normal goods for specific groups of people. While the price remains unchanged, people tend to buy more normal goods when their income increases and they less likely to buy normal goods when their income falls. TrackR is price elastic meaning consumers are responsive/ sensitive to a change in price. If we decide to elevate the price of TrackR, the quantity demand will be declined.
Step 3: We also need to estimate the costs...

...CHAPTER
5
Developing
PricingStrategies
and
Programs
CLASS
NOTES
OBJECTIVES—
§ Define
the
internal
factors
affecting
a
firm's
pricing
decisions.
§ Identify
the
external
factors
affecting
a
firm's
pricing
decisions.
§ How
do
consumers
process
and
evaluate
prices?
§ How
should
a
company
set
prices
initially
for
products/services?
§ How
should
a
company
adapt
prices
to
meet
varying
circumstances
and
opportunities?
I.
Price,
the
second
"P"—
it
is
the
sum
of
all
the
values
that
consumers
exchange
for
benefits
of
having
the
product/service.
§ It
has
been
the
major
factor
affecting
buyer
choice.
§ But
nonprice
factors
have
become
increasingly
important
due
to
the
increasing
affluence
of
developed
economies.
§ Price
is
the
only
element
in
the
marketing
mix
that
produces
revenues
as
the
other
represent
costs,
thus
it
is
CRITICAL
to
understand
thoroughly....

...﻿Marketingstrategy is defined by David Aaker as a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage. Marketingstrategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives.
Marketing Mix Modeling is often used to help determine the optimal marketing budget and how to allocate across the marketing mix to achieve these strategic goals. Moreover, such models can help allocate spend across a portfolio of brands and manage brands to create value.
The marketing mix is a business tool used in marketing and by marketeers . The marketing mix is often crucial when determining a product or brand's offer, and is often associated with the four P's: price, product, promotion, and place.[1] In service marketing, however, the four Ps are expanded to the seven P's [2] or eight P's to address the different nature of services.
Category
Definition
Product
A product is seen as an item that satisfies what a consumer...

...Mobilephoneindustry started to emerge in the Philippines during the 1990’s. Before the 90s, telecommunications was a business for only fixed line operators which majority is owned by PLDT. Majority of mobile communications then rely on unsecured frequency-band walkie talkies.
A little later, mobilephones the size of a one-liter bottle were introduced utilizing GSM technology. Further forward, the size of these devices have shrunk into the newer models and beepers have been introduced. With a combination of the functionalities of these two independent devices, the introduction of short messaging service in the GSM technology has popularized the use of mobilephones.
Filipinos are innately social, and non-confrontational in nature, and thus, communication pays a vital part in day to day life. And, with an inexpensive access to SIM cards and SMS service, mobilephones have been a fad.
According to a survey recently (2012) conducted by global research agency Synovate, one out of every 4 (Filipino) surveyed, said they can't live without a mobilephone. The number of mobile subscribers in the Philippines is expected to reach 117 million by end-2016 and will have a 114% penetration rate by end-2016, according to a report by Business Monitor International (BMI).
In the Philippines, Nokia,...

...The cellular phoneindustry has evolved over a period of 20 years, from first generation to third generation mobiles. The inventions by mobileindustry incorporate:First Generation (1G) -The first generation mobilephone refers to the mobilephones that were developed in the 1980s. Second Generation (2G) -GSM, CDMA and TDMA are the different protocols that brought the mobilephone into the second generation stage. The 2G was introduced to the market basically in the early 1990s. Second And a Half Generation (2.5G) -Still under the same network protocol, but provided services such as WAP and GPRS enabling mobilephones to access on certain websites. Coloured screen with camera featured mobilephones were also introduced in this stage. Third Generation (3G) -A whole new network protocol launched in the twenty-first century. It is either under IMT-2000, UMTS or W-CDMA standards. The 3G protocol enables high speed connection (speed similar to broadband connection) to access through internet and also video calls.
Handsets have become a necessity from a luxury. The mobileindustry has influenced the lives of millions of people worldwide. From being only a voice communication device; the mobile handset has gradually become...

...Virgin Mobile USA Pricing Strategy1.) Given Virgin Mobile's target market (14 - 24-year-olds), how should it structure its pricing? The case lays out three pricing options. Which options would you choose and why? Be as specific as possible with respect to the various elements under considerations (e.g., contracts, the size of the subsidies, hidden fees, average per-minute charges, etc.)Given Virgin Mobile's (VM) target market (14 - 24-year olds), I would recommend the company to structure its pricing based on the model presented in Option 3. This option, although appearing to be quite radical and extreme, would allow VM to create its own pricing structure while fixing some of the problems that are so common in the cell phoneindustry. The goal of VM's pricingstrategy was to make sure that they were able to offer competitive prices, while at the same time remain profitable and one step ahead of the competition. By going with Option 3, VM would be able to reach out to a broader range of customers and meet their specific cell phone usage needs. By eliminating the long-term contracts altogether, it would be a big advantage for VM from a customer acquisition standpoint. For example, for those people under the age of 18, they would now be able to purchase their own cell phone through VM without having to ask...

...﻿
Product, Pricing, and Channels Paper
MKT/421
PricingStrategy
Establishing an effective pricingstrategy is crucial for the success of a business when launching a product or service. “Pricng decisions affect both the number of sales a firm makes and how much money it earns.” (University of Phoenix, 2011, para. ) Indeed, one of the most important issues facing any business is determining how much to charge for a product or service. The market for tablets and other mobile devices has a wide range of options to choose from. Prices range from as low as $59.99 for a smaller Proscan tablet at sold at Wal-Mart to Apple’s iPad starting at $349.00 and go higher depending on how much memory you’d like to have included. Amazons Kindle Fire HD offers a quality product at a competitive price point considering the quality of materials such as HD camera and HD display, for around $299.00 with smaller size Kindle Fires going for $160.00
An effective pricingstrategy when launching the Kindle Fire Hd would be initiating a penetration pricing policy that covers a wider demographic. Apple’s iPad appeals mainly to the elite market. Amazon doesn’t have a discount plan to offer but does have additional incentives to set itself apart from competitors. The convenience of the Amazon store means purchases and additional features and content are readily...

...CHRISTIAN SERVICE UNIVERSITY COLLEGE
DEPARTMENT OF BUSINESS STUDIES
PRICING AND ITS EFFECTS ON CONSUMER BUYER BEHAVIOUR
BY
ISAAC OFORI MANU
SHIRLEY ANNOR
PRISCILLA ADJEI
ERIC OFOLI ANANG
MARY ABENA FORDJOUR
JULY 2011
STATEMENT OF AUTHENTICITY
We have read the university regulation relating to plagiarism and certify that this report is all our
own work and do not contain any unacknowledged work from any other source. We also declare
that we have been under supervision for this report herein submitted.
Candidates Names
Signature
Date
ISAAC OFORI MANU
…………………………………………
…………..
SHIRLEY ANNOR
…………………………………………
……………
MARY ABENA FORDJOUR ………………………………………..
…………….
PRISCILLA ADJEI
…………………………………………
……………..
ERIC OFOLI ANANG
…………………………………………
…………….
SUPERVISOR’S DECLARARTION
I hereby declare that the preparation and presentation of the dissertation were supervised in
accordance with the guidelines and supervision of dissertation laid down by Christian Service
University.
Supervisor’s Name:MR. STEPHEN BANAHENE
Signature -----------------------------------
Date ------------------------------------
Haed of Department’s Name: MR. STEPHEN BANAHENE
Signature ------------------------------------
Date --------------------------------------
i
ABSTRACT
Price is not just a number on a tag. Price comes in many forms and performs many functions,
rent, tuition, fares, fees, rates, tolls, retainers, wages and commissions all may in some way be
the price for...